Fiscal Sustainability in the Presence of Systemic Banks: the Case of EU Countries
AbstractWe provide a first attempt to include o?-balance sheet, implicit insurance to SIFIs into a consistent assessment of fiscal sustainability, for 27 countries of the European Union. We first calculate tax gaps a la Blanchard (1990) and Blanchard et al. (1990). We then introduce two alternative measures of implicit o?-balance sheet liabilities related to the risk of a systemic bank crisis. The first one relies on microeconomic data at the bank level. The second one is based on econometric estimations of the probability and the cost of a systemic banking crisis. The former approach provides an upper evaluation of the fiscal cost of systemic banking crises, whereas the latter one provides a lower one. Hence we believe that the combined use of these two methodologies helps to gauge the range of fiscal risk.
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Bibliographic InfoPaper provided by Banque de France in its series Working papers with number 428.
Length: 41 pages
Date of creation: 2013
Date of revision:
Fiscal sustainability; tax gap; systemic banking risk; off-balance sheet liabilities.;
Other versions of this item:
- Agnès Bénassy-Quéré & Guillaume Roussellet, 2012. "Fiscal Sustainability in the Presence of Systemic Banks: the Case of EU Countries," Documents de travail du Centre d'Economie de la Sorbonne 12077, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Agnes Benassy-Quere & Guillaume Roussellet, 2012. "Fiscal Sustainability in the Presence of Systemic Banks: The Case of EU Countries," CESifo Working Paper Series 3975, CESifo Group Munich.
- Agnès Bénassy-Quéré & Guillaume Roussellet, 2012. "Fiscal sustainability in the presence of systemic banks: the case of EU countries," Working Papers 2012-05, CEPII research center.
- Agnès Bénassy-Quéré & Guillaume Roussellet, 2013. "Fiscal Sustainability in the Presence of Systemic Banks: the Case of EU countries," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) hal-00825256, HAL.
- Agnès Bénassy-Quéré & Guillaume Roussellet, 2012. "Fiscal Sustainability in the Presence of Systemic Banks : the Case of EU Countries," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00755705, HAL.
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-30 (All new papers)
- NEP-BAN-2013-03-30 (Banking)
- NEP-CBA-2013-03-30 (Central Banking)
- NEP-EEC-2013-03-30 (European Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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